FTSE 100 set to rally after Wall Street volatility and crypto crash

The FTSE 100 looks set to rally at Thursday’s open after yesterday’s equity weakness and cypto-crash. CFD and spreadbetting firm IG sees the London index rebounding around 60 points, making the price 6,997 to 7,000 with just over an hour to go until the open. Wild swings in cryptocurrency prices aren’t particularly uncommon nevertheless Bitcoin’s crash down to US$30,000 before recovering to almost US$40,000 was sufficient to get the attention of even the most dismissive. Cryptos weren’t the only volatile markets on Wednesday. The FTSE 100 had given up 1.2% by the close and US markets were dashed again. Investors are caught in a no-man's land of indecision between optimism over the economic reopening, and concerns over inflation and how it is being handling by the central banks, that’s according to CMC Markets analyst Michael Hewson. “One of the narratives driving yesterday’s losses was concern that the Federal Reserve’s apparent lack of urgency over inflation could mean that they might be too late in the event prices suddenly start to run away to the upside,” Hewson said in a note. The analyst added: “As we look ahead to the autumn it still seems likely the Fed will taper its $100bn a month bond buying program, assuming the US economy remains on track, and the market shouldn’t fear that, as it would suggest that the recovery is on track.” On Wall Street, the Dow Jones dropped 164 points or 0.48% to close Wednesday at 33,896 whilst the S&P 500 ended 0.29% lower at 4,115. The Nasdaq was stronger, rallying to end the session only slightly lower for the day at 13,299. The Russell 2000 small cap index meanwhile gave up 0.78% to close at 2,193. In Asia, Japan’s Nikkei rallied 102 points or 0.36% this morning to trade at 28,151 whilst Hong Kong’s Hang Seng was 175 points or 0.6% lower at 28,417. The Shanghai Composite index meanwhile dipped 0.23% to 3,503. Around the markets The pound: US$1,4117, up 0.01% Gold: US$1,874 per ounce, up 0.53% Silver: US$27.81, up 0.76% Brent crude: US$66.90 per barrel, down 2.6% WTI crude: US$63.30 per barrel, down 3.3% Bitcoin: US$39,993, up 2.43% 6.50am: Early Markets - Asia / Australia Stocks in the Asia-Pacific region were mixed on Thursday as Japan’s exports rose 38% in April compared with a year ago, according to data from the country’s Ministry of Finance. The Shanghai Composite in China fell 0.28% and Hong Kong’s Hang Seng index slipped 0.76% In Japan, the Nikkei 225 gained 0.30% while South Korea’s Kospi fell 0.52%. Shares in Australia surged, with the S&P/ASX 200 trading 1.12% higher. READ OUR ASX REPORT HERE Proactive Australia news: Strategic Elements Ltd (ASX:SOR) has reached several critical new development milestones for its moisture powered self-charging battery with shares as much as 9% higher intra-day to A$0.305. Austral Gold Limited (ASX:AGD) has discovered two new gold-silver rich veins at Amancaya Mine in Chile following the receipt of new assay results from 11 drill holes. Westar Resources Ltd (ASX:WSR) has kicked off its maiden reverse circulation (RC) drilling program at Gidgee South Gold Project in Western Australia as well as exploration at the Birrigrin Mining Centre which includes a DGPR survey over the Birrigrin line of workings and surrounds. Valor Resources Ltd (ASX:VAL) has started a desktop review on the Picha Copper-Silver Project in southern Peru that will incorporate fieldwork. Lotus Resources Ltd (ASX:LOT) (OTCMKTS:LTSRF) has begun ore sorting test-work on ore from Kayelekera Uranium Project in Malawi with strong initial results revealing the potential to improve project economics. Castillo Copper Ltd (ASX:CCZ) (LON:CCZ) (FRA:7OR) is buoyed by preliminary interpretations by a geophysicist consultant that reveal possible extensions to mineralisation at Big One Deposit within the Mt Oxide Project in northwest Queensland’s Mt Isa Copperbelt. Firefinch Ltd (ASX:FFX) (OTCMKTS:EEYMF) (FRA:N9F) has achieved another milestone in the second stage of its ramp-up strategy with commissioning of the Morila Gold Mine comminution circuit in Mali, West Africa, using stockpiles as well as feed from Morila Pit 5. Skyfii Ltd (ASX:SKF) (OTCMKTS:SFIIF) is seeking to become the “global leader in data intelligence”, as it looks ahead to promising financial results from the June quarter. Iron Road Ltd (ASX:IRD) welcomes the completion of an independent technical review of the ore processing flow sheet for Central Eyre Iron Project (CEIP) that verifies the ore processing flowsheet. XTEK Ltd (ASX:XTE) has signed a Memorandum of Understanding (MOU) with French space technology company MECANO ID for the companies to work towards international space market programs.